Indiana § 32-28-3-18 - Receipt of payment from third person not limiting right to lien

§ 32-28-3-18. Receipt of payment from third person not limiting right to lien

Sec. 18. (a) This section applies to a provider of labor, materials, or equipment under a contract for the improvement of real estate that conditions the right of the provider to receive payment on the obligor's receipt of payment from a third person with whom the provider does not have a contractual relationship.

(b) This section does not apply to a construction contract for the construction, alteration, or repair of the following:

(1) A Class 2 structure (as defined in IC 22-12-1-5).

(2) An improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5).

(3) Property that is:

(A) owned, operated, managed, or controlled by a:

(i) public utility (as defined in IC 8-1-2-1);

(ii) municipally owned utility (as defined in IC 8-1-2-1);

(iii) joint agency (as defined in IC 8-1-2.2-2);

(iv) rural electric membership corporation formed under IC 8-1-13-4;

(v) rural communications cooperative corporation formed under IC 8-1-17; or

(vi) not-for-profit utility (as defined in IC 8-1-2-125);

regulated under IC 8; and

(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public.

(c) An obligor's receipt of payment from a third person may not:

(1) be a condition precedent to;

(2) limit; or

(3) be a defense to;

the provider's right to record or foreclose a lien against the real estate that was improved by the provider's labor, material, or equipment.

[Pre-2002 Recodification Citation: 32-8-3-18.]

As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.8; P.L.81-2020, SEC.21.

IC 32-28-4Chapter 4. Foreclosure and Expiration of a Mortgage or Vendor's Lien

32-28-4-1Limitation of actions 32-28-4-2Record silent as to due date of debt; date of execution omitted; expiration of lien; recorder's certification of satisfaction of mortgage or lien by lapse of time 32-28-4-3Record silent as to when debt due; affidavit stating when debt is due; time for filing; effect of filing on lien duration and limitation of actions